How Do You Handle Pastoral Support?

Question regarding pastor’s love offerings:

The Pastor does not receive a salary from the church, however, on a weekly basics he does receive an offering, there are pre printed envelopes which states Pastoral Support.

It is strictly on a voluntarily basics with no specified amount attached.

Is it considered income for the Pastor and are the contributions tax deductible to the donor?

Thank you for your help!

Answer
The IRS would probably consider the income taxable to your Pastor because ...
....in order for a love offering to be nontaxable for the minster...the offering must be:

• Spontaneous in nature
  
• Not solicited
  
• Clearly defined as a gift with no service attached
  
• Not a tax deduction for the donor

The way you are doing it would violate two of those guidelines. It is not spontaneous in nature and it would be considered a gift for a service.....preaching and other pastoral duties.

Also, with the way you have it set up....the donations would probably not be deductible to the donor as it is going to an individual and not the church. You could not give them a contribution receipt from the church.

Hope this helps.



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